Principles of marketing: Lecture 39

Principles of marketing: Lecture 39 provide students with knowledge about: marketing communications; simple marketing system; promotion and its goals; promotion mix; advertising; personal selling; sales promotion; public relations;... Please refer to this lesson for details!

MGT301

of   Lecture­38

Public Relations

Publicity

appearing in the mass media as a news item

Today’s Topics Review 4th P (Promotion)

Marketing Communications

Communication

Product/Service Money

Feedback

Promotion and Its Goals

 Marketing activities used to communicate 

positive, persuasive information about an 

organization, its products and its activities to a target audience

 Purpose: to directly or indirectly create sales, influence consumers

Personal Selling

Any Paid Form of Non-personal Presentation by an Identified Sponsor.

Any Paid Form of Non-personal Presentation by an Identified Sponsor.

Sales Promotion Short-term Incentives to

Encourage Sales.

Public Relations Building Good Relations with Various Publics by Obtaining

Favorable Unpaid Publicity.

Direct Marketing Direct Communications With

Individuals to Obtain an Immediate Response.

Personal Presentations by a Firm’s Sales Force.

The Marketing Communications

Mix

of-Sales Method

Percentage-Affordable Method

Competitive-Parity Method

and-Task Method

Objective-Setting the Total Promotion Budget

Setting the Promotion Mix

A paid form of non­personal communication about an organization and/or its products to a target audience 

through a mass medium

The direct presentation of a product to a prospective customer by a representative of 

the selling organization

Demand­stimulating activity designed to supplement advertising and facilitate 

personal selling

A planned communication effort by an organization to contribute to generally favorable attitudes and opinions toward 

an organization and its products

Direct connections with carefully targeted individual consumers to obtain an immediate response and 

cultivate lasting customer relationship

Advertising

identified sponsor

Message execution Social-responsibility review

Money Factors to consider:

Stage in PLC Market share and con- sumer base Competition and clutter Advertising frequency Product substituta- bility

ment

Measure- cation impact Sales impact

Communi-Media Reach, frequency, impact

Major media types Specific media vehicles

Media timing Geographical media allocation

The Five M’s of Advertising

 Informative Advertising

 Persuasive Advertising

 Reminding Advertising

Choose the Media

Yellow Pages

Outdoor

Internet

Magazine Television

Communication Effects

Is the Ad Communicating Well?

Communication Effects

Is the Ad Communicating Well?

Advertising Program Evaluation

Major Consumer Sales Promotion 

Tools

Cannot Reverse Declining Sales

Trend

Cannot Reverse Declining Sales

Trend

Cannot Overcome Inferior Product

May Encourage Competitive

Personal Selling

The direct presentation of a product to a 

prospective customer by a representative of the selling 

organization

Basic Sales Tasks

Sales Force Management

Step 1 Prospecting and

Knowing How to Meet the Buyer to Get the Relationship Off to a Good Start.

Telling the Product “Story” to the Buyer, and Showing the Product Benefits.

Steps in the Selling Process

Step 5 Handling Objections

Managing the Sales force

Designing Sales force Strategy and Structure

Recruiting and Selecting Salespeople

Training Salespeople Compensating Salespeople Supervising Salespeople Evaluating Salespeople

Direct Marketing

  Fastest growing promotional mix element

  Easy to narrowly target a segment

  Measure outcomes easier

  Databases are extremely important

Factors Driving  Direct Marketing Growth

Predictive Modeling

Predictive Modeling

Customized Products

Customized Products

Convenience

Fragmented Markets

Fragmented Markets

Shrinking Media Audiences

Shrinking Media Audiences

Price Sensitivity

Forms of Direct Marketing

Direct Mail

Customer Databases

With a Focus on

Database Technology Database

Database Marketing

Identifying Prospects

Deciding Which Customers Should

Receive a Particular Offer

Deciding Which Customers Should

Receive a Particular Offer

Deepening Customer Loyalty

Reactivating Customer Purchases

How Companies Use Their 

Databases ?

 Direct marketing campaigns that use multiple 

vehicles and multiple stages to improve response rates and profits

 Marketers seek to improve response rates and profits by adding media and stages that 

contribute more to additional sales than to 

additional costs. 

Integrated Direct Marketing

various publics by obtaining favorable publicity, building up a good “corporate image” and 

handling or heading off unfavorable rumors, 

stories and events

Public Relations

Identifies issues of public concern

Executes programs to gain public acceptance

Executes programs to gain public acceptance

The Role of Public Relations

The Role of Public Relations

Major Public Relations Tools

Special Events

Special Events

Written Materials

Written Materials

Public Service Activities

Web Site

Web Site

appearing in the mass media as a news item

Publicity

. .

Summary

 Creating Competitive Advantage